Connectone Bancorp, Inc. · NASDAQ:CNOB
Connectone Bancorp — Investor Presentation (November 2023)
30 slides from Connectone Bancorp's investor presentation, Nov 1, 2023
Slide 1: ConnectOne Bancorp, Inc. Investor Presentation November 2023
& ConnectOne Bancorp, Inc. CNOB Investor Presentation November 2023
Slide 2: About ConnectOne Bancorp, Inc.
About ConnectOne Bancorp, Inc. ‘connectOne Bancorp, in. ls a modem financial senices company with $9.7 billon in assets It operates through its bank subsidiary, Connectone Bank, and its fintech subsidiary, BoeFly. ConnectOne Bank is high performing commercial bank offering afullsuite of products and
Slide 3: Organic Growth
Organic Growth Opportunities to expand as a result of post-pandemic trends Il Densely populated, lucrative markets IM Strong demand for personalized service among small to mid-sized business owners I Our target market is largely dominated by the largest institutions in the country, leaving tremendou
Slide 4: Dynamic Expansion
Dynamic Expansion Leveraging technology to drive new opportunities @ Roots in NY/NJ metro area allow the bank to expand with clients as they build out-of-state outposts I Digital investments coupled with al attract top talent allows for dynamic expansion mm Banking Hub model allows ConnectOne to exp
Slide 5: Operating Performance
Operating Performance LTM and 2023 Q3 Financial Highlights 1.51% 9.1% LT pn’ ‘a8 3 % of average assets Tangible Common Equity Ratio 3.01% LIM Net Interest Margin Now: See Appendix 1.04% TM core Return on Assets 0.43% Non-performing ‘Asset Ratio? Pn represents pretaxnetincameexcig the Impact of merge
Slide 6: Core Net Interest Margin
Core Net Interest Margin Yields and Costs 535% 549% 563%, 460% eeu 430% ro 420% we sas 54a 449%, ‘mS 44% aa 455% ee a — 236% 152% 2o1ev 2019" 2020 zy zo 1923 2923 3023 —e-Loans ——Imterest-eaming Assets = Costof Funds 2ar% 2019" 2020" 2020 202 1023 2023 3023 # Peers —e-cNos 2 Nines lrang hes arp arte
Slide 7: Robust Profitability and Capital Generation
Robust Profitability and Capital Generation Return on Average Assets Tangible Book Value per Share Growth 1.69% $2500 120% 2000 70% Aa 2 $15.00 20% 3 i § z a“ 082s 083% oats © $10.00 2088 $5.00 80% “130% 2ovey 20197 2020" 2o2ty 2022" 3923, zoey 2019 2020 2021Y 2022Y 1923 2023 3023 wm NOB TEV —'—Peer
Slide 8: Non-Interest Income
Non-Interest Income Diversification of Revenue SBA Gain on Sale Commercial Residential * Strong fee income momentum BoeFly + Growing opportunities to expand product set + Interchange fees + Overdraft fees Maintenance fees Minimal dependency on income streams subject to regulatory pressures
Slide 9: Diversified and Granular Loan Portfolio
Diversified and Granular Loan Portfolio (Sin miions) Select Loan Portfolio Details as of September 30, 2023, Segment su sot Total Underwiting Standards Construction Multifamily ay Tae Seta spend eee Fon pores wih ne on ty Estonpier omnis maser Lineups Sloe wg bes ve he cone, cal mato may ‘cette soon
Slide 10: Loan Portfolio Detail
Loan Portfolio Detail Te [ice [pacer Te [pase [aceae) (in millions) lene - other / Mise S767 ‘9% [o0c- warehouse / industrial $255 x5] exe rera es | fooc- neta af Residential/ ere-ortice a 1] fooc-omer mal Consumer, 3% exe: warenouse / Jooc: ome / Warehouse or naustt 2 | aea Use msl loesetmene 6 24|
Slide 11: High Quality Asset Composition and Reserves
High Quality Asset Composition and Reserves Loan Loss Reserves / Loans Receivable Nonperforming Assets / Total Assets 095% WE sass aaa 087% 1ore 109% 108% oso% ae | l | | | | t hii Patan ianiev! bisa Gistt sasevl geal tonsa: "aos zoiey 2019" 2020 2021¥ 20227 1923 2023 3023, [ENPAs Exc Taxi/ Total As
Slide 12: Strong Underwriting Culture
Strong Underwriting Culture Comprehensive Underwriting . '™ Loan origination process supported by speci of credit analysts quality direct commercial lending platform with litle ‘or no reliance on participants or wholesale purchases Prudent growth. Underwriting Process | Lending authority for commerc
Slide 13: Deposit Franchise
Deposit Franchise Deposit Composition as of Sept. 30, 2023 Uninsured Deposits as of Sept. 30, 2023 Total Bark Unconsoldated Deposits (RCO Mero Noninterest- Lees $s nam vs Estimate Uninszed Deposits (RCO Memo item 2) $ «an Less Collateralized Deposits 79 Les: Alita Subsidiary Deposits 379 Nowmaity Aa
Slide 14: Deposit Franchise (cont.)
Deposit Franchise (cont.) Granular Client Deposit Compo: tion as of September 30, 2023 «Public Adminstration other services + Accommodation and Food Services + Arts, Entertaiment, and Recreation + HealthCare and Social Assistance ‘Admin & Supper Waste ManagementRemediation Services + Management of C
Slide 15: Enhancing Our Deposit Franchise
Enhancing Our Deposit Franchise Tech Investments Partnerships with Mantl and Mant! will replace our current in branch and online de origination cliente» $ and supp: hmodel Expanded Business Lines targeting dey businesses, such as Healthcare ConnectOne is a destination for top talent, allowing us to
Slide 16: Disciplined Expansion Through M&A with Demonstrated Expertise as a Skilled Acquiror
Disciplined Expansion Through M&A with Demonstrated Expertise as a Skilled Acquiror '© Completed transaction on January 2, 2019 and integrated systems less than 20 days ater closing | Value-add transaction; many benefits realized ‘Loan-to-deposit ratio improved ‘ORE concentration reduced [Net intere
Slide 17: Active M&A Environment
Active M&A Environment Opportunities in Market Disruption m Talent + We've experienced increased success in attracting revenue generating talent + Due to disruption, individuals are seeking out ConnectOne New Business Lines + The opportunity to pick up clients who have been displaced by transactions
Slide 18: Acceleration of Growth: Tech-Forward Leadership
Acceleration of Growth: Tech-Forward Leadership Building a Leading Commercial Bank, Powered by Best-in-Class Technology Building the Future of Bal Investmentsin technology support the growth of ConnectOne’s high performance, low efficiency model = Continued investments to enhance the bank's onlinean
Slide 19: Acceleration of Growth: Tech-Forward Leadership
Acceleration of Growth: Tech-Forward Leadership Capitalizing on Niche Specific Opportunities With both patented and proprietary technology, BoeFly helps connect small to mid-sized businesses with professional loan brokers and lenders across the United States BoeFly operates as a separate, independen
Slide 20: Best-In-Class Efficiency
Best-In-Class Efficiency One of the Best Efficiency Ratios in the Industry Historical Operating Performance = 79% sts 5498 sae 7s oe s < Pies 4 b b pov 1023” 2023” 3023 Peers iene ato + Pes OpemtngNe/Avg. Assets zorey ” 2019v "20207 NOB iene Ratio 202 Locations utilize technology to serve as “busine
Slide 21: A People First Culture with Recognized Success
| A People First Culture with Recognized Success — NIBIZ Best Places We are proud to be WELL Health-Safety Rated! to Work " & ConnectOnebiank
Slide 22: Strategy & Vision
Strategy & Vision CNOB: A Compelling Investment Opportunity Consistent Financial Performance- Among Best-in-Class Solid Credit Culture with Disciplined Lending Philosophy Track Record of Superior Organic Growth Financially Prudent Acquiror and Experienced & Efficient Merger Integrator Benefitting fr
Slide 23: ConnectOne Bancorp, Inc.
& ConnectOne Bancorp, Inc.
Slide 24: A) a=} = o a < PHD HHH HH H HH H © orp,
A) a=} = o 2 a < PHD HHH HH H HH H © orp, Inc. & Connectone Banco
Slide 25: Loan Growth Metrics (ex. ppp)
Loan Growth Metrics (ex. ppp) ses aes on sae soos ” 8.00% seco 7s sisc0 soos pre 100 son $500 s2i9sa7 serene tttigy 2008 = 7 = oe - = Ao” mo me 1 lama aS ETD secistonn Fandngs sa cam Pitt mNetGrovth_Aveoge Funding Coupon —esAverge Porto Wel CRE Geography as of September 30,2023 CRE originations LTM
Slide 26: CRE Portfolio Additional Detail
CRE Portfolio Additional Detai Office Composition as of September 30,2023 FL Other Oternve — 6e Te Boroughs 1 Manhattan Ny exnvo) os NJ NY(EXNYC) = Manhattan + Other NYC Boroughs = FL + Office portfol $508 million + Manhattan represents only 6.5% of the segment and less than 0.5% of total loans + Po
Slide 27: Reconciliation of GAAP and Non-GAAP Measures
| Reconciliation of GAAP and Non-GAAP Measures As hetarth oats (Sein to FE ELT Tz eunontaie Hea Naecare Arlee CormonSocbadre s 9m apes § man § nee $ oso Dotan Cre Dost Manges“ Ta 2S 2 20 ‘as 08 ethane Adie renga z EINES Hs = CES Tas E Bae ‘rages egy s rox ype $ sigs § uss 090 erp ered tock ‘ase ‘sag
Slide 28: Reconciliation of GAAP and Non-GAAP Measures, Continued
| Reconciliation of GAAP and Non-GAAP Measures, Continued As ert te Cerne Act ete Yared Deco 3 (sinha TERRG none wee A ON ae ‘ices Mess “Tot Nonetest perce ee ee ee ee) arottanot Cr Dept nage re ae hn en ee eee ee ee) age Bnses ox as 4H FOC Sl ar eserrect fCradt 10 oes anksegushrert of Eat 99) Foros
Slide 29: Reconciliation of GAAP and Non-GAAP Measures, Continued
| Reconciliation of GAAP and Non-GAAP Measures, Continued ‘As cor For the Quaers ded ‘As oe For the Years Ended December 31, (8s in thousond, xcept par ohare dot) Tap 30,2023 Jon 30,2023 Mar 3120052010 2019 2020 2021 20m ‘ok Value Per Share: ‘Stockholder equity $ 1aoqise $ 1195997 $ 119097 § 13927 §
Slide 30: Reconciliation of GAAP and Non-GAAP Measures, Continued
Reconciliation of GAAP and Non-GAAP Measures, Continued conte Ses Sse ees ae “See Se Nea One core BE ge Los regan esters neers) $ wanes ADs mas § AUN S Samese ¢ GEMS GeO Same sation ue cc) Sapo re ee ee es —— a on, o. os eyes Natan Ooo one eo oc oY Neti Crone 5 sms ows _mops wos ‘ som an CeO aig Te
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